Golden Ocean Group Ltd, a leading dry bulk shipping company, has reported its results for the quarter ended 30 September 2017 (3Q17).
Golden Ocean’s net income totalled US$0.4 million (and earnings per share of US$0.00) for 3Q17, compared with net loss of US$12 million and loss per share of US$0.10 for 2Q17 and net loss of US$26.7 million and loss per share of US$0.25 for 3Q16.
Adjusted EBITDA was reported at US$40.4 million for 3Q17 compared with US$29.7 million in 2Q17 and US$8.6 million for 3Q16.
During 3Q17, the company entered into agreement to sell six ultramax vessels. It took early delivery of one capesize newbuilding and took delivery of the remaining three of the14 modern dry bulk vessels acquired from Quintana Shipping Ltd earlier this year.
Golden Ocean raised US$100 million in capital through a US$66 million equity offering and a US$34 million equity in-kind contribution as partial consideration for two modern capesize vessels acquired from affiliates of Hemen Holding Ltd. It also terminated the covenant waivers related to the company's recourse debt.
Birgitte Ringstad Vartdal, Chief Executive Officer of Golden Ocean Management AS, commented: "Golden Ocean returned to profitability in the third quarter of 2017 and significantly improved the operating cash flow in an improving freight environment. The Company has taken a series of steps to maximize its market leverage by focusing commercial efforts on the vessel segments we believe provide the greater exposure to a recovery in the dry bulk shipping market. The Company's financial position has also been enhanced significantly over the past twelve months following improved operating results, strategic asset sales, and the equity issuance completed last month."
Per Heiberg, Chief Financial Officer of Golden Ocean Management AS, added: "We are pleased to report that Golden Ocean has been able to terminate waivers on its recourse debt and return to normal financial covenants as well as removing restrictions on new acquisitions, new debt and dividend payments one year ahead of the timeline the Company previously agreed to with the lenders. With our strong cash balance and continued debt amortization payments, our balance sheet should continue to strengthen. This provides us the financial flexibility with respect to the majority of our free cash flow to pursue additional opportunities and build shareholder value."
Read the article online at: https://www.drybulkmagazine.com/shipping/21112017/golden-ocean-sees-positive-q3/